Rebate Rule’s Demise Quells Some Uncertainty for Plans, PBMs

Jul 15, 2019

In a move that Wall Street analysts deemed a win for the managed care industry, the Trump administration has decided to withdraw a proposed rule that would have overhauled the prescription drug rebate system in Medicare Part D. The proposed rule, first released in February, would have removed safe-harbor protections under the federal anti-kickback statute for rebates paid by drug manufacturers to PBMs, Part D plans and Medicaid managed care organizations, and it would have created a new safe-harbor protection for point-of-sale drug discounts. The rule was set to go into effect Jan. 1, 2020, despite objections from insurers and PBMs over what they saw as a short timeline to implement the new requirements.

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